Delhi-NCR received Rs.700 Cr PE investments, reported property consultant firm Cushman & Wakefield. However PE firms showed least interest in Gurgaon.
DELHI: In 2012, private equity firms invested Rs.700 Cr in the Delhi-NCR. Overall, India received Rs.19,000 Cr in 2012. PE firms contributed one third of the total investments. The remaining investments were received through institutional sales.
Cushman & Wakefield reported that PE investments in India rose by seven percent in the year 2012-13. Over Rs.6200 Cr was invested in India by the PE firms.
The property consultants report that the Indian realty market is one of the top real estate investment markets in the world. It was ranked 20th.
Though the PE investments rose in the last year, the number of deals was less. The number of deals has gone down. However it has not affected the investment levels because Indian market received some bigger deals.
Fire Capital aka First Indian Real Estate’s Om Chaudhary said that the PE investors are cautious of investing in the realty market. Fire Capital aka First Indian Real Estate is a Gurgaon based PE firm whose main focus is real estate.
The returns are minimal as against the higher expectations. The margins are shrinking, adds Mr. Chaudhary. His firm has invested in many projects -including residential, mixed use and integrated satellite urban villages.
Though Delhi-NCR as a whole witnessed a growth in PE investments, Gurgaon witnessed a steady fall.
Ramprastha Group CEO Nikhil Jain too admits that the market in Gurgaon is not as attractive as it used to be. He said that the market is highly sluggish.
The trend has undergone wide changes. Earlier the PE firms used to consider the cost of clearances, approvals and so on. They used to invest in projects even when it was in the planning level.
Now the PE investments are made only when the projects is ready. Further the firms are not ready to consider the cost spent for other things like approvals. However there is no data available to prove how many PE firms have invested in Delhi-NCR.